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HRM Defined
Management is responsible for maintaining order; leadership is responsible for producing change.
Concerns the personnel policies, managerial practices and
system that influence the workforce by influencing employees’:
-behavior -attitudes -performance
HRM plays a major role in:
•Clarifying an organization’s human resource problems
•Developing solutions for them
Two groups normally perform HRM activities:
•HR manager-specialists
•Operating managers
HRM strategies must reflect the organization’s strategy regarding
people, profit, and effectiveness
An investment in people effects organizational effectiveness more
than money, materials, or equipment
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HRM and Organizational Effectiveness
For a firm to survive and prosper, reasonable goals must be
achieved in:
 Performance
 Legal compliance
 Employee satisfaction
 Absenteeism
 Turnover
 Training effectiveness and ROI
 Grievance rates
 Accident rates
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Objectives of the HRM Function
HRM Contributions to Effectiveness
Help the organization reach goals
Provide trained, motivated employees
Employ workforce skills/abilities efficiently
Increase satisfaction, self-actualization, quality of work life
Communicate HRM policies to all employees
Maintain ethical policies, socially responsible behavior
Manage change to the mutual advantage of individuals,
groups, the enterprise, and the public
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Impact of Human Resource Management
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HRM Activities
Five major domains of HRM
1.Organizational design: the interaction of people, technology
and tasks performed in the context of the mission, goals, and
strategic plan of the organization.
2.Staffing: recruitment, orientation, selection, promotion and
termination.
3.Performance Management & Appraisal: assessments of
individual, unit or other aggregated levels of performance to
measure, and improve work performance.
4.Employee Training & Organizational Development:
establishing, fostering, and maintaining employee skills based
on organizational and employee needs.
5.Reward Systems, Benefits, & Compliance: any type of
reward or benefits available to employees
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HR Competencies
Professional &
Technical
Knowledge
Business
Competence
HR Professional
Integration
Competence
Ability to Manage
and/or Lead Change
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A Brief History of HRM
English
Guilds
Masons, carpenters, leather workers,
other craftspeople
Industrial
Revolution
Changing work conditions and
social patterns
World Wars
Scientific management, welfare work,
industrial psychology
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Strategic Importance of HRM
Traditional HRM = focus
on specialists
Strategic HRM = all
managers are responsible
Specialists
Line managers
Objective
Better performance
Improved understanding and
use of human assets
Role of HRM
Respond to needs
Lead, inspire, understand
Time focus
Short-term results
Short, intermediate, long
term
Control
Rules, policies, position
power
Flexible, based on human
resources
Culture
Bureaucratic, top-down,
centralization
Open, participative,
empowerment
Following the rules
Developing people
Cost centers
Investment in human assets
Responsibility for
human resources
Major emphasis
Accountability
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Skills of HRM Professionals
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Median Salaries for HRM Positions
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Organization of an HR Department
Chief HR
Executive
Typically reports to the
top manager
Small/Medium
Firms
HRM and another function may
be in a single department
Nonprofits
HRM is typically a unit in the
business office
HR specialists are usually located at the
headquarters of an organization
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HRM’s Place in Management
To educate others about the HR implications of
decisions, HR executives must understand
Production
Marketing
R&D
Investments
IT
Advertising
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Changes in the Professional World
• Work in small groups and identify five changes in the
professional world in the past 5 to 10 years.
• Identify one positive and one negative implication of
each change from an HR perspective.
• Record your changes and select a speaker from your
group to present your findings to the large group.